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Bruce Power Supplier Forum Safely Secure Our Future

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Bruce Power Supplier Forum Safely Secure Our Future Bruce Power Supplier Forum Safely Secure our Future September 21, 2018 Confidential 1 Welcome – Today’s Agenda Agenda Item Responsible Time Registration and Coffee / Networking All 8:00 - 9:00 Welcome and Safety Moment Richard Horrobin, VP & MD, Supply Chain 9:00 - 9:10 Introduction / Kick off Richard Horrobin, VP & MD, Supply Chain 9:10 - 9:20 Brue Power State of the Nation • Opening comments Mike Rencheck, President & CEO • Operational update Len Clewett, EVP & CNO 9:20 - 10:10 • Projects overview Kelly Trice, EVP, Projects & Field Services • 2019-2021 Business Plan John Soini, EVP, Finance & Commercial Services Procurement Outlook Richard Horrobin, VP, Supply Chain 10:10 - 10:30 Achieving Performance Excellence Supplier Relations and Scorecards John Soini, EVP, Finance & Commercial Services 10:30 - 10:50 Addressing your Feedback Localisation and Our New Indigenous Richard Horrobin, VP & MD, Supply Chain 10:50 - 11:10 Procurement Policy Supplier Code of Conduct John Kain, DM, Code of Conduct 11:10 - 11:25 Industry Update John Peevers, DM, Communications 11:25 - 11:40 Morning Wrap-Up – Instructions for the Afternoon Richard Horrobin, VP & MD, Supply Chain 11:40 - 11:45 Lunch and Networking All 11:45 - 12:45 Golf – 9 holes; Shotgun start All 1:00 - 3:30 Wrap-up and Closing Comments Mike Rencheck, President & CEO 3:45 - 4:15 Confidential 2 Safety Information • Safety Moment • Logistics • Medical, Fire or Police emergency – call 911 • First Aid Responders • Fire alarms – nearest exit, assemble in parking lot • Washrooms Confidential 3 Confidential 4 Project Performance: Safety, Quality, Cost and Schedule Mike Rencheck, President and CEO Confidential 5 Project Performance 1. Project Leadership - No substitute • The leadership of a project matters – mindset, attitude, and organizational culture across the team and its contractors • PMI processes and standards are needed but too often a crutch for good leadership, engagement and decision making. • Creating the Team • Purpose, identity, and culture. • Aligning incentives through consistent performance and metrics. • “Ownership mind-set among all team members, ensure timely decision-making, and proactively manage performance using leading indicators.” Confidential 6 Project Performance 2. Safety and Productivity are the same go hand-in-hand • Build a culture of excellence – safety, quality, schedule and cost are all required to perform to standards. • Shaping and enforcing behavior and mind-sets on project teams • Training and role modelling to instill values • Re-enforcement of standards – • Site signage • Productivity-promotion - productivity hotline, suggestion cards, celebrations of success stories, and a rewards program. Confidential 7 Project Performance 3. Ownership – a partnership between owner and suppliers • We are in this together – a 25 year Life Extension program with a 15 year MCR project critical path. • Relationships – performance is the key and all topics are on the table. • Strategic partners – pooling and long term contracts, innovation pilots or continuous improvement programs Confidential 8 Project Performance 4. Integrated Project Team • One Team - A unified project organization. • Collaborative and Supplier, owner, contractor act as one • Schedules - • Alignment - Key tasks • Issues – team communicates and solves quickly • Project Leaders – “establish the culture, direction, and systems that enable the team to work effectively—not as masterminds who delegate tasks and instructions top down.” Confidential 9 Project Performance 5. Continuous Improvement • Metrics: Project Improvement (PI) • Partners • Improve project value through innovations, ideas, optimizations in techniques or schedule execution, productivity, or scope control. • Reviewed continuously— by the IPT —throughout the project. • Outcome - significantly increase the predictably and reduce risk for a successful delivery. Confidential 10 Project Performance 6. Project Control Center • Integrate all aspects of project performance – safety, quality, schedule and cost • Ownership - being responsible and accountable for performance and results. • War Room Mentality- “strict meeting structure to establish a daily project cadence and facilitate rapid issue detection and resolution.” • Collaborative project culture • “ensuring transparent and early reporting of issues.” • “finding solutions rather than assigning blame” • COMMON TOOL SET - P6 and/or Ecosys Confidential 11 Operational Update Len Clewett, EVP and CNO Confidential 12 Safety • Safety Pillars • Safety Culture • - Confidential 13 Quality • Preparation • Execution • Learning Confidential 14 Cost and Schedule • 291 Outage Days in 2019 • New Equipment Performance Division • Excellence - Safety and cost are strongly correlated Confidential 15 Projects Update Kelly Trice, EVP Projects & Field Services Confidential 16 Understanding Our Business Model and 2019-2021 Business Outlook John Soini, EVP Finance & Commercial Services Confidential 17 Our Business Model 6 Year Cycle 3 Year Plan 1 Year Performance Confidential 18 Procurement Calendar Outlook Richard Horrobin, VP and Managing Director, Supply Chain Confidential 19 Procurement Calendar Outlook Significant Procurements accepting Proposals • Engineering MATOC • BP – OPG Transformers Collaborative Procurement • Heat Exchanger Field Services • Laundry Services Significant Upcoming Procurements • Extended West Shift Plus Execution • Protective Relays (Detailed Design, Equipment) • Valve Services • Training Services • Fire Protection Bruce A & B Confidential 20 Procurement Calendar Outlook (www.brucepower.com) Confidential 21 Supplier Relations and Scorecards Addressing Your Feedback John Soini, EVP Finance & Commercial Services Confidential 22 Behavioural Attributes of Great Relationships • Building: “Transparency is key, and taking accountability…Removing the us vs. them mentality is helping”. • Breaking: “Playing the blame game. Unwillingness to truly understand the process and implement solutions”. *Drawn from feedback from 90 supplier representatives. Confidential 23 Program Results – Examples of Observed Performance Trends 2017 - 2018 Supplier Performance Summary Supplier Name Area September October November December January February March April May June Safety 100%(11/11) 100%(11/11) 100%(11/11) 90%(9/10) 100%(7/7) 100%(11/11) 100%(10/10) 100%(11/11) 92%(11/12) 100%(12/12) Quality 91%(10/11) 91%(10/11) 100%(11/11) 100%(10/10) 100%(7/7) 91%(10/11) 90%(9/10) 82%(9/11) 100%(12/12) 100%(12/12) Cost 90%(10/11) 82%(9/11) 90%(10/11) 100%(10/10) 100%(7/7) 100%(11/11) 100%(10/10) 100%(11/11) 100%(12/12) 100%(12/12) Supplier 1 Supplier Schedule 82%(9/11) 91%(10/11) 81%(9/11) 80%(8/10) 86%(6/7) 91%(10/11) 90%(9/10) 91%(10/11) 83%(10/12) 92%(11/12) Safety 100%(5/5) 100%(5/5) 100%(5/5) 100%(5/5) 100%(3/3) 100%(3/3) 100%(3/3) 100%(3/3) 100%(2/2) 100%(2/2) Quality 100%(5/5) 100%(5/5) 100%(5/5) 100%(5/5) 100%(3/3) 100%(3/3) 100%(3/3) 100%(3/3) 100%(2/2) 100%(2/2) Cost 100%(5/5) 100%(5/5) 100%(5/5) 100%(5/5) 100%(3/3) 100%(3/3) 100%(3/3) 100%(3/3) 100%(2/2) 100%(2/2) Supplier 2 Supplier Schedule 100%(5/5) 100%(5/5) 100%(5/5) 100%(5/5) 100%(3/3) 100%(3/3) 100%(3/3) 100%(3/3) 100%(2/2) 100%(2/2) Safety 100%(13/13) 100%(13/13) 100%(13/13) 100%(13/13) 100%(13/13) 100%(13/13) 100%(13/13) 100%(14/14) 100%(14/14) 100%(14/14) Quality 100%(13/13) 100%(13/13) 100%(13/13) 100%(13/13) 100%(13/13) 100%(13/13) 100%(13/13) 100%(14/14) 100%(14/14) 100%(14/14) Cost 85%(11/13) 85%(11/13) 92%(12/13) 92%(12/13) 100%(13/13) 92%(12/13) 100%(13/13) 100%(14/14) 100%(14/14) 100%(14/14) Supplier 3 Supplier Schedule 62%(8/13) 77%(10/13) 84%(11/13) 85%(11/13) 77%(10/13) 85%(11/13) 85%(11/13) 100%(14/14) 100%(14/14) 100%(14/14) Safety 100%(24/24) 100%(24/24) 100%(20/20) 100%(19/19) 100%(19/19) 100%(20/20) 100%(20/20) 100%(19/19) 100%(20/20) 100%(19/19) Quality 83%(20/24) 100%(24/24) 100%(20/20) 100%(19/19) 89%(17/19) 85%(17/20) 100%(20/20) 100%(19/19) 95%(19/20) 84%(16/19) Cost 96%(23/24) 88%(21/24) 95%(19/20) 95%(18/19) 84%(16/19) 80%(16/20) 75%(15/20) 63%(12/19) 65%(13/20) 95%(18/19) Supplier 4 Supplier Schedule 88%(21/24) 88%(21/24) 85%(17/20) 79%(15/19) 63%(12/19) 65%(13/20) 80%(16/20) 74%(14/19) 70%(14/20) 84%(16/19) Confidential 24 Improving Net Performance (but not 100%!) Confidential 25 Supplier Survey Update - Background • Focus Areas – Supplier perspectives on: • RFx processes • Contract / PO Execution • Communication and Support • Supplier Opportunity • Overall relationship and behaviours • Survey issued to 25 suppliers (March 1-28, 2018) • 82% confirmed response • Total of 544 comments submitted against focus areas. • Action plans set for top 5 themes. Confidential 26 Supplier Survey – Next Steps Feedback Action Plan • Simplify the process and eliminate duplication/redundant information Change order process is slow • Stakeholder and pilot with 2 supplier partners • Implement solution in Maximo • Construction Managed Task scope improvement team has been formed Scope of work is not always clear • Simplify and clarify Construction Managed Task scope process • Simplify and clarify main RFP templates • Continued emphasis on JMCs and SRMs Gap in organizational alignment • Ongoing presentations to supplier partners and project organizations Not receptive to innovation • Launched [email protected] suggestions • Project scope definition pilot with supplier partner • Continuing to pursue long-term and large awards through Category Not enough time to bid Management / Strategic Sourcing • Improve up-front project scheduling for commercial processes Follow-up survey in Spring 2019 Confidential 27 Localization and Bruce Power’s Indigenous Procurement Policy Richard Horrobin, VP and Managing Director, Supply Chain Confidential 28 Our Local Supply Chain – 2016 (10) Confidential 29 Our Local Supply Chain – Today (36) Confidential 30 Our Local Supply Chain – 2020? Confidential 31 Bruce Power Indigenous Procurement Policy Confidential 32 Supplier Code of Conduct John Kain, Code of Conduct and Privacy Officer Confidential 33 Trust takes years to build, seconds to break, and forever to repair.
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